Question
Calculate the retention rate required for the following company to have a sustainable growth rate of 10%.Assume all ratios (profit margin, debt/equity, ROE, etc) will
Calculate the retention rate required for the following company to have a sustainable growth rate of 10%.Assume all ratios (profit margin, debt/equity, ROE, etc) will remain constant.
2014 Company Data
Sales = $500MAll Costs (excluding taxes) = $300M
Taxes = $50MAssets = $2B
Equity Multiplier = 2.0
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
